Fed Maintains Rates Amidst Trump Tensions, Economic Uncertainty

Federal Reserve Chair Jerome Powell is expected to maintain current interest rates at 4.25-4.5% during the upcoming March meeting, amid economic uncertainty stemming from President Trump's tariffs and policies. Analysts predict that while the Fed could signal potential rate cuts later in the year, Trump's trade wars may complicate the economic outlook, leading to inflationary pressures. Fitch Ratings has also downgraded its U.S. growth forecast, attributing part of this to tariff-related uncertainties. Powell's recent comments suggest a cautious approach, emphasizing the need for clarity before any policy changes can be made. The relationship between Trump and Powell remains fraught, with Trump openly criticizing the Fed for not lowering rates to combat inflation. Financial markets are closely monitoring upcoming Fed forecasts and Powell's press conference for insights into future monetary policy adjustments.